Hello Friends here we come up with our write up on “SMC Gyan Series”.

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How To Get Started in Online Investing? Part 1

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Topic is ” How To Start Investing Online ?”

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In this First part of Blog, we would try to discuss about the questions beginner investors do have in their mind, what is exactly this Online trading account and what are the steps of investing online.

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Generally prospective or beginner investor comes up with lots of questions in his mind like :

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What do people do in online trading?

How to do that? Which is the best one?

How the benefit would be?

Can we keep atleast our investing money?

How to track online trading among different varieties on that?

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So here we would like to put some light into it so as such any budding investors can get helpful info out of it.

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First of all one needs to know that what is Online Trading?

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The act of placing buy/sell orders for financial securities and/or currencies with the use of a brokerage’s internet-based proprietary trading platforms is called Online trading.

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The use of online trading increased dramatically in the mid- to late-’90s with the introduction of affordable high-speed computers and internet connections.

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Stocks, bonds, options, futures and currencies can all be traded online.

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You need few things first of all to invest online :

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Money, computer, Internet connection and determination.

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Here are some steps to start investing online:

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The first thing you need to set up is an online trading account, which you can get from any online investing firm or online brokerage firms.

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There are various reputed online brokerage firms that will offer you a range of different deals.

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You should choose a broker that offers you information, support and advice.

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You should also choose a broker that you can contact and that you can trust.

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Also one of the most important aspects you have to consider before opening an online trading account is to find out whether or not the online investing firm has instant ‘real time’ access to stock trading prices.

You can use following means to get in touch with SMC Online in order to set up your online trading account:

* Call their toll free 1800-11-0909 or

* SMS “SMC” to 54545

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Next Blog we would try to touch upon the aspects like what are the further points or steps, an investor needs to keep in his consideration while investing online and how an online brokerage firm like SMC ONLINE help investors in reaping the benefits of online trading.

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If you find yourself asking the question –

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Why should I Save ?

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Why should I Invest ?

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Where do I Invest ?

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Who would Guide me to take informed decision on my Investments ?

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…then look no further !

Why SMC?

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SMC Group, a leading Financial services provider in India, a vertically integrated investment solutions company, with a pan-india presence is there to guide you and provide complete investment solutions to you.

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SMC Group, having rich experience of more then two decades in financial markets, is one of the largest & most reputed investment solutions company that provides a wide range of services to its client base of more than 5, 50,000 clients with presence in more then 1500 cities.

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SMC Online, an unit of SMC Group, is one stop financial investment portal for investor’s all financial needs.

…Indian policy-makers are not really worried over the potential adverse impact on the country’s economy because of the multi-billion-dollar debt default risk faced by Dubai World, ranked among the largest conglomerates in the region.

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Commerce Minister Anand Sharma said “India is a very large economy. It is a resilient economy”.

“I don’t think some development in real estate in Dubai will have an impact on the Indian economy” he added.

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He also said “As far as India is concerned, the housing, real estate sector and construction industry are all doing well.

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This is confirmed by the increasing demand for construction materials, cement and steel,”

Though he was a trifle more circumspect and preferred to watch the situation before hazarding a guess.

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“We will have to study what the issue is, what is the problem, what will be the possible implication if any for the Indian economy, the people and corporates,” Chawla told.

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Asked if the crisis will impact money flows into India,since the Gulf region accounts for over half the total inward remittances worth over $25 billion annually from expatriate Indians,

Chawla said: “It’s unlikely.”

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The state-run Dubai World stunned the global financial world Thursday when it announced it would need to restructure its debt, estimated at $59 billion, to preempt defaultand asked creditors for a six-month deferment.

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The conglomerate, which has a host of companies under its fold, has interests in a wide range of businesses such as realty, infrastructure, logistics and economic zones.

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And that is not just in the region but across a clutch of countries including India.

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Indian equitiesreacted adversely to the development, with the benchmark sensitive index (Sensex) of the Bombay Stock Exchange (BSE) down as much as 634.16 points, or 3.76 percent, midway into the trading session Friday.

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It later recovered and closed with a loss of some 220 points, or 1.3 percent over the previous close.

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“Indian marketshave rallied more than 100 percent from the lows a year ago,mostly backed by news of recovery and not necessarily on fundamentals,”

In this Blog we would read the Analyst views with respect to the monetary point of view.

Analysis from the Analyst from monetary point of view:

Though there is a hike in SLR to 25 % but we think it will not have much more impact because the total investment book of commercial banks is already at 30.4% of total NDTL.

Although key rates of CRR, reverse repo and repo rates have been left unchanged, special repo facilities have been withdrawn.

Real estate loans provisioning are set to become more expensive.

NPA norms for banks have been tightened while liabilities of scheduled banks arising from transactions in CBLO with Clearing Corporation of India Ltd. (CCIL) will be subject to maintenance of CRR.

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The RBI is thus attempting to withdraw liquidity from areas where excess liquidity had reached a point it was more than comfortable with, while also targeting better quality management of credit.

Another point is that in the policy stance, RBI has given first priority to keep a vigil on trends in inflation and to be prepared to respond swiftly and effectively through policy adjustments to stabilize inflation expectations.

Second, it will monitor the liquidity situation closely and manage it actively to ensure that credit demands of productive sectors are adequately met while also securing price stability and financial stability.

Lastly, RBI will maintain a monetary and interest rate regime consistent with price stability and financial stability, and supportive of the growth process.

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In conclusion, it bears emphasis that the Reserve Bank is mindful of its fundamental commitment to price stability.

It will continue to monitor the price situation in its entirety and will take measures as warranted by the evolving macroeconomic conditions swiftly and effectively.

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To conclude all the factors it seems that with the withdrawal of special liquidity measures together with an imposition of CRR in borrowing in CBLO market, RBI has taken a first to step towards controlling liquidity.

With prioritizing inflation it is expected that the next step of RBI could hike in CRR as it has also reduced the indicative growth of Broad money to 17% from 18%.

Overseas Indians continue to set great store by deposits with banks in India due to the upward revision in the interest rate ceiling while the Non-resident Indian (NRI) deposits with banks increased by $1.8 billion in Q1 of FY2010.

Moreover, in the case of repatriable NRE deposits, the ceiling rate on NRE deposits was raised to LIBOR/SWAP rates plus 175 basis points.

Further, private transfer receipts which constitutes of remittances from Indians working overseas and local withdrawals from NRI rupee deposits, remained buoyant and rose by 9.4% to $13.3 billion during Q1FY2010 from $12.2 billion in Q1FY2009.

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On the other hand, during Q1FY2010, invisibles receipts, comprising services (travel, transportation, insurance, software, etc), transfers and income (investment income and compensation of employees), decreased by 0.7% to $38.684 billion due to reduction in all categories of services except insurance and financial services and a decline of 20.3% in investment income receipts.

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However, invisibles payments rose by 11.9% to $18.505 billion on account of growth in payments under services and income account.

The trade deficit declined to $25.986 billion and net invisibles was lower at $20.179 billion whereas merchandise exports recorded a decline of 21% in Q1FY2010 and imports declined by 19.6% as against a positive growth of 42.9% in Q1FY2009.

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